October 23, 2025

Outdated Dental Insurance Tech Costs the System Billions: LightSpun’s AI Fixes the Crisis

The U.S. dental insurance industry serves more than 200 million Americans and generates nearly $100 billion each year, but outdated systems slow everything down. Manual claims processing, excessive paperwork, and high administrative costs delay payments and burden dental practices. Lightspun solves this by using AI to automate claims, credentialing, billing, and communication. More than 90 percent of claims are processed automatically, administrative costs are reduced by up to half, and dentists get paid faster. Insurers operate more efficiently, providers spend less time on paperwork, and patients receive care without unnecessary delays. Lightspun is building the modern infrastructure dental insurance has been missing.

The U.S. dental insurance market serves over 200 million Americans and is valued at nearly $100 billion annually, But the industry is weighed down by outdated technology that wastes billions each year through slow, error-prone claim processing, excessive paperwork, and high admin costs. These inefficiencies hurt dental practices with delayed payments, increased costs, and administrative burdens that ultimately impact patient care.

How LightSpun Tackles the Problem

LightSpun leverages cutting-edge AI to address the root causes of dental insurance inefficiency. Our platform automates claims processing, credentialing, billing, and communication—eliminating manual bottlenecks and speeding approvals.

  • AI Handles It All: LightSpun’s AI reads, sorts, and automatically approves claims and documents, removing the need for endless paperwork and back-and-forth.
  • Automation at Every Step: From claim intake to provider credential checks and billing management, Lightspun automates the entire workflow, ensuring smooth operations.
  • Instant Decisions: Routine insurance claims are approved immediately, with AI reviewing and processing information in real time for faster outcomes.

Benefits for Insurers, Providers, and Patients

  • 90%+ of Claims Auto-Processed: Dentists get paid faster because most claims no longer require manual handling. This directly tackles the $17 billion lost annually due to slow claims workflows.
  • Admin Costs Cut by 50%: By slashing the industry’s steep 18% administrative tax, payors free up resources to focus more on patient care instead of paperwork.
  • Complex Claims Paid 5x Faster: Dental practices improve cash flow as complex claims move through in days instead of weeks.
  • 95% of Routine Claims Auto-Approved: Patients and providers avoid frustrating delays and get faster access to care.
  • 95%+ Paper Claims Processed Electronically: Reducing reliance on outdated, error-prone paper submissions—especially since 1 in 7 dental claims is still filed on paper.
  • Provider Onboarding in Days, Not Months: More than half of dental offices still use outdated technology, slowing onboarding. Lightspun speeds this up, making it easier for dentists to join insurance networks quickly.
  • Support Calls and Costs Reduced: Fewer errors mean support call volumes drop by 50%, and provider call costs fall 75%, so office teams can spend more time on patients.

Why Automation Matters Now

The dental insurance market is growing fast, with more consumers seeking coverage and regulators pushing for efficiency. Manual, fragmented systems won’t keep up. LightSpun’s AI-powered platform makes automation a reality today, helping dental payors slash costs, accelerate payments, and deliver better overall outcomes for both dental practices and their patients.

Ready to Experience a Smarter Dental Insurance System?

LightSpun offers dental insurers, DSOs, and TPAs a proven way to modernize claims, credentialing, and eligibility workflows with AI-driven automation and security.

See it in action and schedule your demo: https://www.lightspun.com/demo

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